Introduction

Handicrfts businesses are getting wider and very much popular because of their
cheap price and uniqueness. Bangladeshi handicrafts are known all over the world
for their rich variety, elegance, grace and skilled craftsmanship. Our main target is
to produce handicrafts products by using the abundant human resource in rural
areas (women) and sell those through our official outlet within market price.
Another important thing we will be focusing on women empowerment. For
making the products we will be using rural poor women who doesn’t have any job
or work. By this plan we can hope to achieve a potential profit as well as women
empowerment.

The name of our business is “ARSHI-A touch of Bangladesh”. We will be keeping 3

shops which will be located at Baily road, dhanmondi and Uttara. Our main head
office will be situated at Kuril. All business plan will be operated from here. Our
handicrafts products will include bags, mats, jute products, wall hangings,
potteries etc. All the products will be designed by us with unique features and
advantages. The main focus is our business is to offer something attractive within
cheaper price. In Bangladesh, our main competitors will be Aarong. We will be
serving more than them and also with cheaper price. Our Mission is given below-

Mission- Our mission is to provide authentic and unique designed handicrafts

products with a very cheap price and another side is contributing socially by
empowring rural women. As our Tag line is “A Touch of Bangladesh”, we will
provide high quality traditional products with uniqueness. It will help to increase
our market growth as well as profit. Dhaka city will be the next target as huge
portion of people are interested to buy handicrafts than the rural people. Our
products will be for all types of people but main focus will be on women and kids
as they are more tend to buy those.

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Executive Summary

Our report was about handicraft product business and also focused on
empowering women. We gave the name of our business as “Aarshi”. We will have
three showrooms all over Dhaka. In Dhanmondi (Metro Shopping Mall) , in Baily
Road ( Capital Shiraj Center ) and in Uttara (Mascot Plaza). We will lease each
shop from each of the malls. Initially we won’t have any owned plants but as
business will grow we will make it. Our focused area is empowring women
through our business. We will hire rural poor women as workers who doesn’t
have any job. They will do each of the stage of our business like product
designing, collecting from the local area, sending to the warehouse. Our main
competitor is Aarong but indirect competitors also may arise.

The report is devided into several parts. In the first part we have discussed a brief
information in the introduction part. Then we gave the PESTEL Analysis.
Then we focused on Industry Analysis and followed by Description of the venture.
Then we have Production plan, Operational planing, Marketing plan and
Organizational plan. We have also given The Assessment of Risk   and finally The
Financial Plan. At the end of the report we concluded by giving a summary.

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PESTEL Analysis
Political Analysis

The Bangladeshi government plays an important role in molding the economy of

the country, either directly or indirectly. As indicated by the constitution of
Bangladesh's Article 123(2)(a),the following election is to be held in the time
period starting from 25th October 2018 to 31st December 2018. If the opposition
comes in power, there might be changes in
government policies, but it will not any significant effect on our business. The maj
or contenders for powerare the two most significant political parties in
Bangladesh- Awami League and Bangladesh Nationalist Party (BNP), currently the
former is in power. They support in making the businesses grow, as it will help the
economy. However, as the opposition gives strikes and blockades, it will affect the
business. The property rights are well developed, as well as other laws. However,
there is corruption present in some areas, like the government. Bribing is
sometimes needed to make certain things work in the system, in favor of the
organization. There are no pending legislations which will affect the business. As
the election took place recently, there will not be any kind of political factors
which might change and affect the business significantly.

Economic Analysis
In spite of all the political chaos, the Bangladeshi economy is sustaining macroeconomic stability and
pushing ahead. The key exchange rates are stable enough, except for the USD, as USD is growing in
comparison to Euro. BDT has appreciated by 17.6% against Euro in the Fiscal Year2015. According to
BBS, the per capita income of Bangladesh has increased to $ 1,314 from $

1,190. Thus, the consumers’ disposable income is rising, and it will continue to do
so. According to the World Bank, the unemployment rate in Bangladesh is 5% as
of 2014, as well as 40% of the total population being underemployed. This will
help to find labors and transform them in order to create a skilled workforce.

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Also, there is an abundance of labor, so it will be relatively inexpensive to hire
labors. Both the consumers and businesses have easy access to credit, as long as
they can show proper paperwork, and this is helpful for our business. The result
of globalization is the increased competition coming from foreign countries.
However, thanks to the distinctive practices which will be followed by the
organization, it is safe enough to assume that it can take on the competition.
Inflation might be a factor which may affect the business, as it is predicted to rise
in the near future.

Social Analysis

The population of Bangladesh is 166,280,713 estimated as of July 2014. The

population growth rate is 1.6% and is still growing. Bangladesh is a densely
populated country with variety of choice of products. Handcraft products are
mainly categorized as home decorating accessories and is demanded worldwide.
From the ancient time handcrafted beautiful and sophisticated products are used
for home decor, accessories and even clothes. But as the trend has changed so
much the demand for handmade products has lessened. New generation likes
elegant products with unique designs that’s why we aim to give them what they
desire. Our products will be different from market products because of the
authentic process of making those products with unique designs.

10-20 years ago women were not that much regular in job sector. But now a day
more women are emerging in this sector even women from rural areas are taking
microloans and trying to do something from their home. We are aiming to
empower women through our business which is the new trend and people are
positive toward such kind of works. In Bangladesh there are four types of religion:
Islam, Hindu, Christian and Buddhist. Religion can effect a society in a great way
but as for our business religion won't be any problem. Because this kind of jobs
are done by everyone and in every religion so we do not have to worry about
relational clash or such.

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Technological Analysis

We aim to capture market with moderate price and unique quality. As we are
entrepreneurs and we don't have that much fund we plan to market and promote
our products through our Face book page, Billboards and TV commercials.

Our main competitor is ARONG and other deshi stores which are already in the
market operating well off. They have the high end machines to produce jute
products and such in a large scale which is a big threat for us. We don't have
those technologies to use in our business because of the shortage of funds and so
they poses us a big threat. Government is recently focusing on empowering rural
people and encouraging to participate by giving microloans, sewing machines etc
to encourage women. We can show our business plan to government and take
the advantage of subsidiary because we also are empowering women though our
business. In that way we can price our product more economically.

Infrastructure can effect a business in a good and a bad way. We will be giving
orders to rural women who will be working from their home. So collecting our
products from them is a hassle for us and also costly. We will appoint one
collector for each area to collect our products and send it to our main branch. This
is a time consuming and costly process for us. But as we are in a initial stage we
can cover the cost and later on plan to use upgraded technologies to benefit
our business.

Environmental Analysis

Making handicrafts products doesn’t affect environment at all. We are focusing

on Eco friendly
products as most of the raw materials will be from nature and products will be ma
de manuallyrather than using any electrical machine. The type of work and
procedure will be completely by hand and using simple tools.

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 For making the products mainly we will be using bamboo, jute, clothes, wood,
paper, cane, cottons, clay, thread and other needed things like glue, glitters, and
colors and so on. These are the things doesn’t make any toxin so it will be friendly
for the environment. We will keep a supervisor to check if the waste materials are
controlling or not. Wastes from the woods, bamboo and jute will be used for
recycling. They can provide huge fuel management process. People nowadays are
very much conscious about environmental pollution issues so we have to be
careful about this. Moreover as our future plan is to export our products in
developed countries we have to maintain the international standards and also will
comply with all the applicable law and regulations that are maintained for the
environmental safety. Any negligence of the environmental laws and rules can
make a very bad effect on our business image as well as the social and
international standards.

Legal Analysis

There are many legislations and laws for doing any business. These can impact the
business in accessing imports/ exports, quotas, taxation and so on. We will be
following each of them for
our business safety issues and for keeping the brand image. In Bangladesh, we ha
ve to follow theantitrust law. This can help to prevent the business from
competitions and strives for sustainability. We will do another important thing
which is copyright our brand nationally and internationally legal person so that
others cannot steal our brands or products. Though our employees working
procedure will be so simple and by hand but still, for health and safety issues we
will be following the law. If we see any injury during working period then we will
provide her proper treatment for our own cost. Then we will maintain proper and
justified salary or wages which fulfill the minimum standard law.

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Industry Analysis
Future outlook and trends

From the ancient time handicraft products are being used in our country. Though
technology has been taken a huge place nowadays but still, handicrafts products
are demandable in present and future market because of their lower price
and authentic design. In foreign country handicrafts products are more
demandable and future market is bright there. As our future plan is to export
them this can make a flourished economic profit for us as well as for our country
also.

Analysis of the competition

In every business has competitors. We have also so many competitors. After

analyzing the market industry and doing market research we have devided into 2
types.

 Direct Competitors: Though we are expecting to be a dominant brand in

Bangladesh but there are already many leading brands are present. They
are our direct competitors. Aarong, Deshal, K- Craft are some of them.
Aarong is the most renowned and demandable brand from all of them. So
our main direct competitor is Aarong.

 Indirect Competitors: Our indirect competitors are other non-market little

handicrafts business shops. They are doing this for a long time. Charukola In
stitute is one of them. These non-branded shops are our indirect
competitors as they are doing business for a long time and established a
good image.

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Market segmentation

We will be targeting the following group of people as our potential customers:

Geographical Segmentation

The organization will target locations such as Dhanmondi, Baily Road and Uttara,
and it will also cover all the other places nearby.

Demographic Segmentation

The organization is targeting a market which falls in the income group of the

following: 0-10,000; 10,000-20,000; 20,000-30,000; 30,000-40,000; 40,000+.

Behavioral Segmentation

Based on behavioral segmentation, the organization is targeting the people with

different buying habits. According to usage rate, the organization will target the
people with medium to low usage rate. According to user status, the organization
will target the potential customers, as well as customers using competitor’s
products. According to buyer involvement, the organization will target the people
with low involvement.

Target Market

Aarshi’s products are more authentic and unique designed. We are expecting to
be a leading brand in the industry and will provide best designed handicrafts with
a cheaper price for each and every one.

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Market size
Initially our market size is small but and if the production and market growth
move faster and make profit, we will expand our market locally and also exparte
them in abroad like USA and UK

Market growth rate

Bangladesh has very huge demand for exporting products to other countries so, it
has a very high market growth rate which will flourish ouse country sector and
increase market share

Key success factor

Some factor which will be able to make the organization into a successful one are:

Availably of labor at lower costs: As three is Anam abundance of availably of labor

the organisation can use this to It's advantage and employ worker at low cost

Low barriers to entry: as this industry does not process any significant barrier to
entry, it will be easy to set uo a business and operate in order to make profits

Description of the venture

There will be 3 showrooms all over dhaka. The place are-

1. Dhanmondi- Metro shopping complex

2. Baily road- Capital Shiraj centre
3. Uttora-mascot Plaza

We will here each shop from each of these malls. These are well known shopping
malls where people go for shopping on a regular basis. We have chosen these
three malls because of their location and popularity. We went to attract
maximum customer and the location of these three malls will enable use to do so.
This three location almost cover the half of the Dhaka, this is the biggest benefit
we will get if we establish our showroom here also three building are maintained
by experience authority, so we don’t have to worry about the cost of state
maintains, renovation and so on.

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Product

There will be variety of products. Among those main products are mentioned

below- 

 Nokshi Katha
 Clay products- Vase, Wall Decorations, Jug, Pots, Mugs
 Hand work designs on- cushion covers, bed covers, pillow covers, table
covers
 Dress for both men and women
 Show piece
 Carpets
 Jute products- Bags, Mats
 Wicker baskets

Size of the business

Aarshi initially will be a small business as it won’t have any production plant. It will
have only 3showrooms and one warehouse which will also act as the head office
of the business. As it is aiming for penetrating the market with cheap market
price, its production will be adequate enough for fulfilling market demand and
satisfy customer wants. Arshi aims to product 1000 unit of each product initially
for the market.

Office equipment and personnel

In each venture it will have enough amount of equipment to fun the showroom
successfully. Each show room will have computer, cash receipt printer, credit card
puncher, security camera and so on. The number of personnel for each showroom
and warehouse are given below.

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 Category Number of Personnel
Manager 1
Sales man 3
Quality inspector 2
Security Guard 2
Total 10

Background of entrepreneurs

Owners of this business have management and marketing skills are all of them are
marketing majors. But Arshi is a very new business so its owners need to know
the in and out of handicraft business to make it to the top.

Production Plan

Manufacturing Process

We will start our manufacturing process from buying raw materials from the local
suppliers. After that we will send it to the worker home so that raw materials
will be useable for the designing. Here their job is to wash off, cut down for
suitable shape and make the products according to the designs we provide them.
As we mentioned before that our business focus is also about empowering
women so all the steps of the making a product will be done by rural women who
are extremely poor and does not have any job.

Physical Plant

As we are in the initial stage of our business, we could not afford for establishing
our own plant.

If we somehow even manage to establish that, it will increase our risk as we won’t
have sufficient capital to run the business. But as the business will grow, we will
definitely make our own plant to process our products and unique designing.

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Machinery and equipment

We won’t have any physical plant of our own so there is no need of much

equipment. We will need hand sewing machine which we will provide to the
workers. Also Still, we need some equipment to run the business as in Dhaka city
we will have some own showrooms. For those we will need some showroom
equipment’s as in air conditioners, TV, lights, some dummy’s etc. There will be
needed office equipment as we will maintain an office.

Names of Suppliers of Raw Materials

Basically we will buy our raw materials from the local suppliers. They do not have
any exact name. We own self will buy those randomly.

Operational plan
Description of company’s operation

In general operational plan means activity of a company for the purpose of

generating the profits. We plan to operate from the head office which will also be
the warehouse of the company. We are going to have its own out lets at different
location inside the Dhaka city. We are going to use direct channel for our
company for the purpose of selling. In this way, we can have complete interaction
with our customer. Our day to day operations will be to achieve projected sales
which will be communicated with the managers and sales persons of our show
rooms.

Flow of orders for goods

As we will be having our own stores situated in Dhaka customers can directly
purchase from our store as well as from our website where they will be able to
choose their desirable colour, size and design.

At first, we’ll collect the products from our workers. It will be collected by our
local collector and then will be sent to our warehouse.

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From warehouse all the products will be sent to the showrooms. So our flow of
goods can be summarized as worker’s house from local collector from warehouse
to the customer through our official outlets

Customers Worker's home

Official outlets Ware house

Local collector

Technology Utilization

Technology has become one of the important aspect of business presently.

People uses internet more than they used to. A part from just using internet for
viewing information people now order through internet. So, internet has
definitely become an important and viable market place. Currently, more than 6.5
percent of total population uses internet according to World Banks provided data.
So, Arshi we are going to utilize the digital arena of marketing to gain more
customers‟ attention. We are going to use the Social Media advertisement to
popularize our brand using right strategy. Face book has a very good frequency of
getting view from customers. As for our business it is easier to let the possible
future customers know about our brand and product along with promotions that
are going on. Using technology for the advertisement is not a no frills any more. It
has become sort of mandatory for us. Using advance technology inside the store
for security is also something important for our shop. We will be using high
quality CCTV camera for the security purpose.

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Usage of technologies-

 Maintaining records of sales

 Taking order and keeping track of records
 Inventory management and recording
 Maintaining communication with customers

Market Plan

The process of analyzing one or more potentially interesting marketplaces in

order to determine how a business can optimally compete in them. The market
planning process typically results in a marketing strategy that can be used to
enhance sales for the business producing it.

Pricing

Price is something that the customers are willing to pay in exchange of the
product. As Arshi is a new entrant and want to capture the greatest amount of
market share by providing good quality product with minimum price, so cost
based pricing will be followed. Arshi will have the minimum profit to get the
production running with the maximum quality.

Distribution

Distribution part is the core heart of marketing stage where products are move
from the factory or production place and go to the customer’s hand in an
authentic way. We will start our distribution by collecting the products from each
worker’s house. As we mentioned before that our raw materials will be sent to
the worker’s home. This task will be done by our local collectors. Our next step is
to send the products to the warehouse and meanwhile our quality inspector will
check all the products if any products are broken or damaged. Then finally, all the
qualified products will be sent to our showrooms. As our products will be so
unique with a lower price, we will use both the pull and push strategies. This will
make our products so innovative that will beat the Aarong.

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We hope, by implementing these steps we will obtain our desired goal.

worker's house ---->collectors ----> Ware house---->Showrooms----> Customers

Promotion

The main focus of promotions is to let people know about our product. We will
mainly use printmedia for our promotional activity.

 Bill board
 Newspaper and magazine advertisement
 Social media
 Radio commercial
 Website
 Pham plates

=>Bill board promotions

Bill boards are helpful for reminding about Archi’s product when the customer is
waiting in traffic or maybe waiting for his bus to arrive. Large billboards with
Arshi’s ads will placed in busy areas such as motijheel, rampura, badda,
bashundhara residential area, dhanmondi and soon. There will a large budget for
billboards only.

=>Newspapers and Magazine advertisement

Newspaper and magazine will help us to reach customers like housewives and
others who don’t go out that much. Newspaper and magazines will help us reach
the customer’s house. There will be front page ads of Arshi once every two
weeks.

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=>Social Media

Now a day Face book is a very popular medium for promotion. Most of the people
use Face book and young generation are very much familiar to this social media
site. Arshi will have its own Face book page. From there it will promote its
products. Also arrange competitions and make customers participate so that we
can create relationship with the customers. Customers will be rewarded with
Arshi’s pro duct. It will also act as a sample to them so that they at least once try
it and then if they get satisfied they’ll come to buy again.

=>Radio commercial

There will be promotions on radio as well because radio is also a popular medium
these days. Teenage boys and girls use this medium a lot also others. There will be
promotions of Arshi at night because after all day people tend to tune to the
channel to listen to radio. So that time of the day is the most appropriate for the
promotion. Also Arshi will sponsor one show of Radio A mar.

They’ll promote out brand by that show as well.

=>Website

Arshi will also have its own website. There all the products will be displayed and
customer will be able to choose their desired color, size, design of the product.
Home delivery service will also be provided.

=>Phamplates

Phamplates will be distributed in front of schools, universities, shopping malls.

Product forecast

Initially Arshi’s products will be produced in workers house. In future we plan to

produce the products in our own manufacturing plant. We also have plan to add
more products to our business and export it outside the country.

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Controls
The change in demand of market will be studied at the beginning of every year in
the form of marketing research. For controlling the marketing activities, we will
focus on relationship building with the suppliers who supply raw materials.
Customer satisfaction is something which is not in the hands of the producers, so
what we can do is ensure our quality for customer retention and good word of
mouth. Ultimately, goodwill of customers can be earned, and that will help in
consumer generated marketing.

Organizational Plan
Form of Ownership

Our business will be a partnership business. We will be holding general

partnership where each partner will invest equal capital and also they will face
the same personal liability.

 Identification of Aarshi’s partners

1. Anika Tabassum

 2. Salman Rashid3.

 3. Tahmina Mosharaf Priya

Authority of principals

Anika Tabassum, Salman Rashid and Tahmina Mosharaf Priya all of them will be
holding same authority. Anyone can provide any opinion regarding the business
and also the dissolution of
the partnership. They also have the same authority to decide the distribution of m
oney in varioussectors. All the partners will decide which suppliers to choose. Any
decision will take place by mutual agreement of all the partners.

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Background of Management Team

All the partners are current students of North South University in BBA. For now
the main focus of the business is to sustain in the long run, increasing the
shareholders equity and in future expand the in abroad.

Current HR System and Management Policies

 Recruitment

The organization will ensure that the recruitment and selection of employees and
workers are fee from any sort of bias, reasonable, and open to all applicants.
Those sort of information will be completely disregarded which might cause
discrimination or biasness towards the candidates, including religion, race,
cultural background, and any other individual characteristic. As women
empowerment is being focused on, the production workers will be the one where
the organization will specify that women will be needed. Otherwise, all other
workers to be recruited will be open to both the genders. External recruitment
will be implemented. Advertisements
will be placed in newspapers like Prothom Alo and the Daily Star in order to attrac
t a pool ofcandidates.

 Selection

Face to face interviews will be conducted by the organization in order to select

the best fit candidates for the organization. A structured set of questionnaire will
be followed, in order
to judge the candidates equally. The candidates who score the highest will be sele
cted for [Link] organization will take 40% well experienced workers
and 60% moderately experienced aswell as inexperienced workers.

 Training

The organization will provide on the job training to the inexperienced and
moderately experienced workers.

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The trainers will be the well experienced workers who are skillful enough to teach
others as well. This will save some costs as the organization does not need to go
to any external source for receiving training. 

 Compensation

The organization will provide the basic wage to the workers, as well as other
benefits, like sick leave and festival bonuses.

 Top Management

There would be a total of 3 top level managers in the company who will work
under the owners. They will usually control the day to day operations of the shops
and would make major transaction decisions for the organization.

 Number of Workers

During the initial phase, the organization will have around 100 workers who will
actually be directly involved in the production of the goods. Other workers
include shop managers, assistants, security personnel, which sums up to 20
individuals.

Assessment of Risk

Weakness of the Business

 Lack of experience is the major weakness.

 Rising competitors
 Low financial investments
 Maintaining the higher quality as our main rivalry is the very well-known
Aarong.
 Lack of promotional activities.

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New Technologies

As we are the initial stage of our business, we won’t have those high quality
technologies. Our equipment will be very simple and general. But there are so
many competitors with high qualified technologies. It might be a risk for us.
However, we do not need to invest more capital for the technologies at this stage.
We will be focus on that when our business will grow and expand.

Contingency plans

Through all the market research and qualified plans we are expecting to stay in
the long run. But in case we face business failure, we have a contingency plan to
export those in the abroad as there are high demand for the handicrafts. Because
they are not that much known with the handicrafts. Though our plan was to
expand our products in the abroad as soon as our growth level increases, but if
failure happen here we will disclose our local business and focus on the exporting.
If that also fails then we will disclose our overall business.

Financial Plan
Breakeven Analysis

As the organization will be set up by a modest amount of capital (BDT 1 crore),

the nature of the business will require some time in order to get back the
invested amount of capital. However, the organization is targeting to gain back
the invested capital by the end of the fourth year of the business, which means
that it will require four years to reach the breakeven point of the business. The
details are given below.

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Sources of fund

In the initial phase of the business, the organization aims to take the loan from a
bank. This will add further costs to the business, which is the interest rate the
bank will charge. However, the organization is confident enough about its
strategies and policies which will make the organization into a successful one, and
will pay back the amount to the bank with interest in due time and in
installations.

SWOT Analysis
Strengths

 Providing unique design with lower price than the competitors.

 Close customer relationship.
 Motivated and quality personnel.

Weakness

 Lack of capital.
 Not having strong brand image.
 Insufficient funds of R&D.
 Insufficient promotional activities.
 Not having owned plant.

Opportunities

 Changing lifestyle.
 Increasing purchasing power.
 More population.

Threats

 Rising strong competitors.

 Changing consumer behavior.
 Competitors can copy our product.

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Conclusion
After describing all the business plans, in the conclusion we would like to say that
‘Arshi’ is a brand with authentic and unique designed products. We will
provide the best quality to keep the best customer relationship and sustain in the
long run. We will try our level best to stand up to its customers by fulfilling every
single promise we made. Another important thing is, our business has a social
contribution. We will be empowering women through our business and thus we
are taking corporate social responsibly. In future we are expecting to expand our
business in every district in Bangladesh and also export the products in USA
and UK.

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References
Bangladesh’s per capita income rises to $1,314. (2015, May 14). Retrieved from
BDNews24:[Link]
income-rises-to-1314

Central Intelligence Agency . (n.d.).The World Factbook . Retrieved from Central

Intelligence Agency:[Link]
factbook/geos/[Link]

Human Resource Management. (2010, July 24).Recruitment and Selection.

Retrieved from HumanResource Management:
[Link]

Kokemuller, N. (n.d.). Examples of Market Segmentation. Retrieved from Small

Business:[Link]
[Link]

The World Bank. (2015, April).Bangladesh Development Update: Economy Moving

Forward DespiteInternal and External Challenges. Retrieved from The World
Bank:

[Link]
development-update-economy-moving-forward-despite-challenges
23|Page